Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs.
B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs.
C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs.
D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
Answer: C
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If the percentage change in the quantity demanded is not zero but is less than the percentage change in the price, demand is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
In monopolistically competitive industries
A) non-price competition through product differentiation is actively pursued by firms. B) product variety is the same as in perfectly competitive industries. C) firms do not respond to changes in consumer demand. D) firms' economic profits are protected by barriers to entry.
A central bank with a hierarchical mandate will seek ________ as a condition of pursuing other goals
A) stable inflation B) high employment C) moderate interest rates D) the approval of the legislature E) none of the above
Gross domestic product is equal to the market value of all final goods and services:
a. exchanged during a period. b. produced domestically during a period. c. produced by the citizens of a nation during a period. d. produced domestically during a period minus the depreciation of productive assets.